Owner of Invision Investments Sentenced on Wire Fraud Charges
|U.S. Attorney’s Office December 19, 2013|
ST. LOUIS, MO—The United States Attorney’s Office announced today that Kevin Brown, owner of Invision Investments, was sentenced to 36 months of imprisonment for operating a Ponzi-style investment scheme in which Brown falsely and fraudulently represented to investors that their money would be used to invest in real estate.
According to court documents, Brown represented to investors and potential investors that Invision Investments had equity in property, when in truth and fact, only a portion of investor funds went into the purchase and/or rehabilitation of properties. Brown executed and provided promissory notes that falsely and fraudulently represented the rate of return investors were promised to receive. He represented that Invision Investments would acquire, rehabilitate, and resell properties sufficient to produce the promised rates of return. In truth, Invision’s real estate purchases and efforts to rehabilitate and resell properties were insufficient to generate the promised funds. Investors were paid returns on their investments using funds obtained from subsequent investors, in addition to returns on legitimate investments, i.e. the sale of real estate. In addition, Brown used investors' funds for business expenses, to pay interest to other investors, and to pay Brown’s compensation and some personal expenses.
Brown was also ordered to pay more than $1.6 million in restitution to victims of his fraud scheme.
This case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Dianna R. Collins handled the case for the U.S. Attorney’s Office.